RAJASTHAN HIGH COURT ISSUES NOTICE ON EXTENSION OF REAL ESTATE PROJECT TIMELINES FOR COMPLETION


Posted On : June 23, 2020
RAJASTHAN HIGH COURT ISSUES NOTICE ON EXTENSION OF REAL ESTATE PROJECT TIMELINES FOR COMPLETION
As the entire country was under lock down for the period 50+ days due to COVID-19. There were several issued faced by all people in this period. As such Real Estate Industry which was in slow pace for the past 2-3 yrs after Implementation of RERA & GST laws have further put the industry to a complete standstill with no progress & developments. Also considering the situation central Govt. has declared the Covid-19 Lock Down period as FORCE MAJEURE clause to protect the Real estate Industry also the period for completion mentioned under RERA have been automatically extended for a period of 6 months, where the project completion date was specified as on or afterwards 25th March 2020. But surprisingly the RERA of Rajasthan has extended the completion dates for all projects irrespective of date of completion, which included the completion dates even prior to Covid-19 lock down period, which is arbitrary
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Due to the Covid-19 pandemic the Real estate sector in the country has suffered huge setback. Due to lockdown & after relaxation non-availability of labor has made the real estate sector to come to a standstill. There are thousands of Real estate projects and Lakhs of homebuyers are waiting for the possession of their dream homes. Even prior to the Covid-19 situation the Real Estate Industry has seen slow growth & progress. There were lakhs of home buyers in the country waiting for completion & handover of the projects. So the Central govt. has passed RERA act to regulate the real estate industry & to ensure accountability of the Real Estate Developers.

During the Lockdown situation in the country & on request of the CREDAI with Builders/Developers the Central Govt has declared the COVID-19 as FORCE MAJEURE situation. In view of the same all the real estate projects which were due for completion under RERA registration have got an automatic extension of all the projects which were due for completion on or after March 25th, 2020. Thus all the real estate projects have got extension of timeline of 6 months to cover the Covid-19 lockdown situation. But in an extreme case of Rajasthan RERA Authority has extended the time line for all the projects for a period of one year irrespective of the date of completion, which even included the projects which were due for completion prior to the Covid-19 pandemic & lockdown. thus there was no separate timeline for the Real estate projects which were not completed till 19th March 2020. Further Rajasthan RERA has even gone to an extent to impose an order that no recovery proceedings shall take place in this time for a period of one year. It literally means the projects that were not completed & which the developers were to pay as compensation under RERA laws were suspended unilaterally without authority of law.

In this regard a PIL was filed in Rajasthan Highcourt challenging the action of Rajasthan RERA Authority.

Written By:
Sharada H v

Sharada H v


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